Investing in Section 8 rentals is a solid strategy and I would recommend it.

Fellow investor/realtors are very helpful to you and your REI strategy.

And you are right, it is a big risk betting on the appreciation.Our strategy to wait to buy the bigger house originated from the multiple factors (interest rates, inflated prices, no need for moving just for elementary school and unstable professional life).

Baselane is a bookkeeping software that is designed for landlords, I've been using it over a year and it's helped me stay organized as my portfolio has grown.

I imagine once I buy a place with a small lot, designated spots are the way to go like you said.

However, I'm uncertain if this strategy is feasible.

My inquiry was solely directed towards understanding the Airbnb algorithm, not delving into rental strategies.

I sold a few homes in Jackson MS to Naca buyers.. its a process and the homes had to be in perfect condition before naca would close  IE FHA or VA appraisal standards at the minimum.. the program is designed for first time home buyers or low income home buyers also NACA was very firm on us ( the seller) buying down rate and closing costs. 

Great to have you and your husband here in the Bigger Pockets community.This sounds like an excellent strategy.

This would the common strategy (BRRRR).